• Defends rate cut amid push to raise monthly remittances to $1b
• IMF chief worried over global trade imbalances

Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has said he does not impose his views on members of the Monetary Policy Committee (MPC), insisting that independent contributions from all 12 members strengthen the credibility of monetary policy decisions.

Cardoso, who chairs the committee, said his role was to provide leadership and steer discussions while allowing members, including the five external representatives, to express their expert views on economic developments and market trends.

He said the CBN was deliberately building an MPC where independent positions count in the decision-making process, reducing the risk of “groupthink” and strengthening the country’s monetary policy framework.

The committee comprises seven internal and five external members, whose participation, according to the governor, has added rigour and credibility to deliberations.

Cardoso spoke during a panel session, How Central Banks Decide, at the ongoing International Monetary Fund (IMF) and World Bank Annual Meetings in Bangkok, Thailand.

He was joined by the Governor of Banque de France, Emmanuel Moulin, and the Chairman of the Governing Board of the Swiss National Bank, Martin Schlegel. The IMF’s First Deputy Managing Director, Dan Katz, moderated the discussion.

The panellists examined the importance of effective communication in achieving central banks’ policy objectives.

Cardoso said the CBN had provided external MPC members with the necessary support and resources to strengthen their research capacity and prepare for the eventual transition to inflation targeting.

The governor also defended the recent decision to cut the monetary policy rate by 3.5 percentage points, arguing that the market absorbed the adjustment without a significant shock because conditions were ripe for the move.

He said the adjustment to the overnight rate and a memorandum of understanding signed with the fiscal authority were among the preparatory steps taken before the committee approved the reduction.

At another panel session involving IMF Managing Director, Kristalina Georgieva, and other officials, Cardoso explained why Nigeria cut interest rates despite divergent policy choices by other central banks.

He said the decision reflected a changing domestic inflation outlook, the restoration of investor confidence and the need to improve monetary policy transmission.

Meanwhile, Georgieva expressed concern over persistent imbalances in global trade, with the United States and China accounting for a substantial share of the problem.

She warned that the effects extended beyond the two economies, affecting countries across the world, but expressed optimism that the problem could be resolved.

“Excessive imbalance is affecting the rest of the world. But I am confident now more than ever before that the problem is solvable,” she said.